What are you buying today?

[CorpRaider]

@dealraker You're not from Salisbury are you!?  hah.

[Castanza]

Added to BRKb, GOOG 

 

Starter in COST 

[E. Nashton]

On 10/12/2022 at 8:13 PM, Monsieur_dee said:

  VRE Canadian real estate etf? Or any other Canadian low cost etf? 

sorry just seeing this now - yeaa i've gotten enough exposure to CDN REITs via my positions in DRM.TO, AX-UN.TO and SRU.UN of which this board has zero interest in. Fair enough - I've gotten destroyed on these positions  

[dealraker]

I think I remember that Parsad is invested now in General Electric.  Today I'm going to buy the stock simply to be contrary because it has been years since I've followed (and criticized) managment.

 

If I am correct I wish Parsad would write about GE as I'd really enjoy getting in to the businesses and valuations...but I'm not over energetic now.  

[Spekulatius]

@dealraker I also have $GE on my to do list, but I have my hands full with stuff I own already and know more about.

 

Years ago, we had quite a bit of discussion about a similar case $DD (was $DWDP, DuPont). Like GE is was a lumbering Gina where new management came in ( Breen) and split up and restructured the company with complex mergers. This was a case that created a lot of brain damage and very little results. It may serve as a cautionary tale to be very careful in these situations. @BG2008

 

Same with spin-offs lately as most of them have been disasters.

Edited October 14, 2022 by Spekulatius

[RetroRanger]

Bought more $EVO yesterday at 78€ (during the short drop phase of the market )

[Monsieur_dee]

8 hours ago, Dean said:

sorry just seeing this now - yeaa i've gotten enough exposure to CDN REITs via my positions in DRM.TO, AX-UN.TO and SRU.UN of which this board has zero interest in. Fair enough - I've gotten destroyed on these positions  

I' like the alignment interest with Micheal cooper and mitch goldhar. Same with morguard and Rai sahi. Which I am surprised doesn't get more attention on this forum from the Canadians. 

[changegonnacome]

HSW

[Jaygo]

31 minutes ago, Monsieur_dee said:

I' like the alignment interest with Micheal cooper and mitch goldhar. Same with morguard and Rai sahi. Which I am surprised doesn't get more attention on this forum from the Canadians. 

 

I follow SRU.u very closely. I live and work right around the largest project and see their properties everywhere. This is a major covered land play with a big distribution. I dont expect to shoot the lights out but see my investment as a very long term 10 % per year. Unless you have millions and want to go into development this is the best way to capitalize on the the flattest land with the fewest natural disasters that has abundant resources and will most likely be home to 40 or 50 million people in the next 50 years. Find me another juridiction like that and i'm all ears. The corridor from Windsor to Quebec city will slowly grow with a very high probability. Smart Centres is right there along for the ride.

 

To me we have an inevitable thing going on in Ontario. We have a culture of acceptance and being the neighbor of the US we will attract as many immigrants as we as a country allow. Currently around 2% population growth for the whole country. Ontario has decent weather and more importantly lots of flat farmland that is cheap to develop on. Smart centres is the best way to play this long term via the stock market. 

 

The way i see it is we have this company that is keeping the lights on plus a bit of profit with the most un-cyclical company as their anchor tenant. Sure Walmart gets a great deal on rent but it draws in lots of traffic day after day, that brings smaller tenant to the table and that is where you get the margins from. So we have a major retail footprint in every single large town and medium city in Ontario and Quebec plus a few in the remaining provinces. 185 Centres in total. These towns are the epitome of suburban Canada and most of the centres are on major through fares and and slated for population growth.

 

Smart centres has a few thousand acres ranging from farmland to properties valued at 5 million an acre that they are slowly densifying. They make money on retail leasing, land sales, development and often take a JV role in many of the new businesses such as retirement homes, self storage, hotels and apartments. 

 

I am not a financials guy and this is major 1st level thinking by the way. 

 

 

[E. Nashton]

@Jaygo Great summary/insight. I'll start a separate thread for SRU.UN. I'll kick it off with your post above...hopefully you don't mind. 

[Jaygo]

11 minutes ago, Dean said:

@Jaygo Great summary/insight. I'll start a separate thread for SRU.UN. I'll kick it off with your post above...hopefully you don't mind. 

I don't mind at all. Thanks

[Spekulatius]

Bought some TSM. Missed the dump yesterday.

[Xerxes]

10 hours ago, dealraker said:

I think I remember that Parsad is invested now in General Electric.  Today I'm going to buy the stock simply to be contrary because it has been years since I've followed (and criticized) managment.

 

If I am correct I wish Parsad would write about GE as I'd really enjoy getting in to the businesses and valuations...but I'm not over energetic now.  

 

@dealraker

 

Barrons had a recent breakdown of the three business that are going to be spun off.

I posted it on the General Electric thread. Re-posted below.

 

Personally, while i am interested in GE Aerospace (re-named GE Aviation) with Larry Culp at the helm, i dont want to deal with spin-offs in 2023 and 2024.

 

I dont even believe they have shared yet even the proforma capital structure of three companies, since i last looked. I do know however that the remenants of the Baker Hughes stake and AerCap will be remain part of GE Aerospace until fully unwinded, which would probably mean matching liabilities to it.

 

I am not expecting a UTC like spin off of Otis and Carrier.

 

 

 

Edited October 14, 2022 by Xerxes

[Dinar]

6 minutes ago, Xerxes said:

 

@dealraker

 

Barrons had a recent breakdown of the three business that are going to be spun off.

I posted it on the General Electric thread. Re-posted below.

 

Personally, while i am interested in GE Aerospace (re-named GE Aviation) with Larry Culp at the helm, i dont want to deal with spin-offs in 2023 and 2024.

 

I dont even believe they have shared yet even the proforma capital structure of three companies, since i last looked. I do know however that the remenants of the Baker Hughes stake and AerCap will be remain part of GE Aerospace until fully unwinded, which would probably mean matching liabilities to it.

 

I am not expecting a UTC like spin off of Otis and Carrier.

 

 

 

Have you looked at how GE compares to Siemens Healthineers and Safran?  I think both are much cheaper.

[Xerxes]

4 minutes ago, Dinar said:

Have you looked at how GE compares to Siemens Healthineers and Safran?  I think both are much cheaper.

 

I dont follow Siemens Healthineers. As for SAFRAN, they and General Electric both have a mega business centered around the CFM/Leap engines. But i think we get a lot more optionality with Larry Culp and what he can do with new verticals within the GE Aerospace business than SAFRAN.

 

Even with the CFM/Leap business, GE has more important IP with its design of the engine core (hot section) vs. SAFRAN ownership of the cold section (the outer section). I just think there is more to have with GE as a long term owner.

 

Below is from Barron's. SAFRAN is not hugely cheap.

 

[Dinar]

54 minutes ago, Xerxes said:

 

I dont follow Siemens Healthineers. As for SAFRAN, they and General Electric both have a mega business centered around the CFM/Leap engines. But i think we get a lot more optionality with Larry Culp and what he can do with new verticals within the GE Aerospace business than SAFRAN.

 

Even with the CFM/Leap business, GE has more important IP with its design of the engine core (hot section) vs. SAFRAN ownership of the cold section (the outer section). I just think there is more to have with GE as a long term owner.

 

Below is from Barron's. SAFRAN is not hugely cheap.

 

If I am not mistaken Safran is 8x EPS with net cash on 2025 numbers

[ValueMaven]

I bought some AMT last week.  Everyone hates the stock - debt, leverage, a data center REIT etc ... has fallen dramatically recently .... I've watched it for 5yrs - and this is finally my shot

[Red Lion]

I bought back some CG, BAM, and AMT puts at a significant profit that I sold last week. My only short put outstanding right now is on SUI. 

 

 

[Red Lion]

Opened a position (again) in BUR. 

 

I have been watching this company for years, and it's always fascinated me. I do have some understanding of the business model and have run across litigation financing in my business. 

 

I've never held a long term position in BUR, but I'm planning to start. I've previously traded BUR twice, made a fast 50% profit right after the Muddy Waters report buying on the forced selling, and then had a wash last year. 

 

I sold my shares at the beginning of the market malaise this year for $9.25. Opened a new position about twice the size of the previous one at $7.67 today. Now if only I had left that money in cash instead of reinvesting it in KKR/APO at significantly higher prices...

[Dinar]

VRE April 2023 17.5 calls 

[Red Lion]

Bought debit put spreads on QQQ today expiring 11/7/22, I'm long the $265 put and short the $255 put. My cost basis is $2.51, so the max profit here would be 300% return if QQQ drops 6% from today's price. 

[Cod Liver Oil]

I have owned Itafos (IFOS.V) for a couple of years and buy more when it pulls back like now.

It is the cheapest thing I own at 2 times fcf. Yes, it is a fertilizer company but is a secular bet on the American

food supply chain becoming an area of national security. It's main asset is in Idaho. It is paying down debt rapidly with the gushing fcf, selling non core assets and has responsible and aligned owners in Castlelake.  We don't own much commodity related stuff except TPL but I like the odds on this.

https://itafos.com/

 

[LC]

46 minutes ago, Cod Liver Oil said:

I have owned Itafos (IFOS.V) for a couple of years and buy more when it pulls back like now.

It is the cheapest thing I own at 2 times fcf. Yes, it is a fertilizer company but is a secular bet on the American

food supply chain becoming an area of national security. It's main asset is in Idaho. It is paying down debt rapidly with the gushing fcf, selling non core assets and has responsible and aligned owners in Castlelake.  We don't own much commodity related stuff except TPL but I like the odds on this.

https://itafos.com/

 

 

Do you have a long term view of pricing? I fear prices won't stay elevated as (either or both) new capacity comes online and China resumes exporting. 

[Cod Liver Oil]

@LC I am agnostic on pricing. They have already paid down debt to $100mm.. If they sell the non core foreign assets, they can bring debt to zero. Then you are left owning Conda, one of the largest phosphate mines in the US and probably an asset of national food security.  In a de-globalizing world, that is a nice thing to own.

[Pelagic]

ONEW. Been holding off on buying this for a while finally decided to grab some today.